Trading glossary
Compound Growth
Compound growth is the effect of reinvesting profits so that returns build on previous returns, rather than trading a fixed size. Over many trades, compounding is what turns a modest edge into substantial growth, but it also amplifies drawdowns, so it must be managed with position sizing. A journal shows the compounding effect in your equity curve and lets you model whether your current size is sustainable through drawdowns. DuskAnalyst tracks your equity over time so you can see the compound curve of your real results, not a projection.
Why it matters for your trading journal: Compound growth is how small consistent edges become large results, and it only shows up when results are measured over time. A journal that tracks equity across accounts makes the compounding visible instead of theoretical.
Example: Example: a trader earning 2% per month on a stable risk model compounds $10,000 to about $12,600 in a year without adding new capital.
What is Compound Growth in trading?
Compound growth is the effect of reinvesting profits so that returns build on previous returns, rather than trading a fixed size. Over many trades, compounding is what turns a modest edge into substantial growth, but it also amplifies drawdowns, so it must be managed with position sizing. A journal shows the compounding effect in your equity curve and lets you model whether your current size is sustainable through drawdowns. DuskAnalyst tracks your equity over time so you can see the compound curve of your real results, not a projection.